Israel must completely withdraw from Palestinian territories: Meshaal

If Israel's acting Prime Minister Ehud Olmert opts for peace, Meshaal told France's Figaro newspaper that "the price to pay is the complete withdrawal from the occupied territories, the immediate end of violence and recognition of the legitimate rights of Palestinians".

He added that if Israel evacuated the West Bank and East Jerusalem, recognised refugees' right of return and dismantled its separation barrier, "I can guarantee to you that Hamas and behind it, all the Palestinians, will be ready for serious steps based on justice and equity with a view to permanent peace with the Israelis".

"Unfortunately we have seen nothing of the kind until now."

Palestinian lawmakers gave their backing on Tuesday to a new government headed by the radical Islamist movement Hamas.

Arab leaders have rejected plans by Olmert to fix the borders of the Jewish state unilaterally.

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